Queretaro is a highly competitive entity for the export manufacturing industry development

 

Mexico is one of the most attractive investment destinations worldwide.  Its trade agreements provide them access to 46 countries and about 1,200 million consumers; in addition, it has qualified human talent and a strategic geographic location.

 

According to CEO Survey, made by PwC, foreign investors’ perception locate Mexico within the top 10 of investment destinations.

 

With this outlook, the Bajio region and, mainly, Queretaro, have achieved attracting a great number of companies that have bet on settle to manufacture and export their products from here to the world.

 

Thus, Queretaro has positioned as a highly competitive entity for the development of the export manufacturing industry, mainly, the automotive and aerospace sector are the ones that have grown the most in the last years.

 

According to Index Nacional, in 2018 IMMEX manufacturing exports amounted 255,616 million dollars, with a commercial surplus of 60,047 million dollars for Mexico with an imported fixed asset of 8.671 million dollars.

 

IMMEX exports (Manufacturing Industry, Maquila and Export Services Program) represented 55.05 % of the total international trade exported by the country.

 

“The importance of our industry is very important, to set it in perspective and with Index amounts nationwide, 6,188 companies have IMMEX program, which generate more than 3 million direct jobs, we anticipate that almost 10,000 indirect ones, with those numbers we are a very important industry for the country,” said Hector Aguilar Ordaz, president of Index Queretaro.

 

 

He added that it is precisely due to new investments arriving in the State, with this boom and growth that has Queretaro strengthening the maquila and manufacturing export industry in the entity.

 

Currently, there are between 200 and 210 companies with IMMEX program in Queretaro, some of them have IMMEX service program, but most of them are of production.  In addition, it is anticipated that these companies generate about 50,000 jobs in the State.

 

“2018, exports in the State and of companies with IMMEX programs were little more than 3,000 million dollars; in 2017, we had 2,857 million dollars in exports from companies with IMMEX programs in Queretaro, what represents an increase of 10 %.  We see an important growth regarding exports and that brings an increase, therefore, in productive plants and of workers,” noted Aguilar.

 

In the entity, he said, from the textile sector, home appliances, metal-mechanic, to the auto-parts and aerospace are important in the last years and continue growing.

 

“We have Samsung, a company from the home appliances sector, which is part of IMMEX Queretaro, Mabe, Kellogg’s, BRP, Bombardier and other companies from different sectors that group the association,” said the president of Index Queretaro.

 

QUERETARO, ATTRACTIVE

As of Index Queretaro president, the entity has many attractive for investors and businessmen.

 

“I could begin for the geographic attractive, we are far enough from Mexico City and close enough, we are two hours away, is a very important issue; highway 58 goes through here, the most important one for the northern part of the country and that led us to the most important ports.  Then, Queretaro geographic location is very attractive.

 

He also mentioned infrastructure, safety and human capital.  Said that investors explain the talent of Queretaro and the quality of universities.

 

“There is too much intellectual material to incorporate companies and make them more productive, which is what investors wanted the most.”

 

EMPLOYMENT GENERATOR INDUSTRY

In addition to being a generator of competitiveness and economic development, the Industry in the state of Queretaro is very important as it is one of the main sources of job.

 

Only in 2018, the Ministry of Sustainable Development (SEDESU, by its Spanish initials) announced 35 new projects for an amount of 4,000 million, said Marco Antonio del Prete Tercero, head of the office.

 

During the January – November period last year the Mexican Social Security Institute (IMSS, by its Spanish initials) reported that a total of 41,380 jobs were generated, which represented an annual growth of 5.1 %.

 

He added that so far this year 14 projects have been consolidated and the number of employees continues increasing at 2,500 figures that exceed the same time period of last year.

 

Sectors with high incidence continue being the automotive and aerospace, with 169 and 75 companies settled respectively, according to SEDESU data.

 

MULTIPLIER EFFECT

The manufacturing export Industry represents an economic growth engine for Queretaro that encourages other sectors development.

 

For Hector Aguilar this industry generates a virtuous circle that turns Queretaro into a competitive entity, attract more investments and more companies.

 

“Companies demand more, then people come from other cities to incorporate the industry and to study.  According to data from the State Government, 40 families per day arrive in Queretaro, if every family arrives with a couple of cars, with two or three children and if they come to buy or lease a house, this generates a virtuous circle,” he explained.

 

Hector Aguilar assured they are seeking for competitiveness and keep operative excellence.  In Queretaro, Index promotes industry progress through six committees we have: fiscal, foreign trade, corporate responsibility, human capital, labor committee, and risk prevention.

 

“We are an industry endeavoring in the congress progress, we stop being a simple maquila long time ago and we became manufacturers with advanced systems, we have a human face, we create foundations, incorporate people with disabilities to labor industry and supply many benefits to our workers.  We are an industry that promotes country progress and human capital which is very important,” he ended.

 

 

 

ESTABLISHMENTS WITH IMMEX PROGRAMS

 

Queretaro concentrated 3.5 % of the total establishments with IMMEX program, locating the State in 10th place nationally.

 

Federative entity

%

1. Baja California

18.2

2. Nuevo Leon

12.2

3. Chihuahua

9.4

4. Coahuila

7.0

5. Tamaulipas

6.7

6. Jalisco

6.3

7. Sonora

5.8

8. Guanajuato

5.7

9. Estado de Mexico

4.5

10. Queretaro

3.5

Source: INEGI / Feb. 2019

 

 

 

IMMEX IN QUERETARO

As of 2016 greater growth of workers was given due to rebounds in sectors such as automotive and aeronautic in Queretaro.

 

 

MANUFACTURING ESTABLISHMENTS

 

YEAR

ESTABLISHMENTS

2016

214

2017

214

2018

219

 

 

DIRECT JOBS

 

YEARS

JOBS

2016

4,344

2017

11,789

2018

26,932

 

SOURCE: index Queretaro.